Three Major Shareholders of Chung Lien Oils Suffer Losses in First Half: Taisun Estimates Over NT$1.5 Per Share Loss

Taisun (1218-TW), one of the three major shareholders of Chung Lien Oils (1246-TW), today (13th) released its unaudited financial results for January–June 2026, approved by the board. After recognizing losses related to the tainted oil food safety incident, investment losses in Chung Lien Oils, and impairment of prepaid investment in Jiakong Fintech, Taisun recorded a post-tax net loss of NT$787 million in the first half of 2026—reversing from a post-tax net profit of NT$322 million in the same period last year—and expects a per-share loss exceeding NT$1.5.

Fushou (1210-TW) and Fumao Oil (1225-TW) have also released their financial performance for the first half of 2026. Fushou reported a post-tax net loss of NT$308 million, or NT$0.9 per share, while Fumao Oil incurred a post-tax net loss of NT$158 million, or NT$0.65 per share, during the same period.

Taisun, which suspended trading today and held a material information briefing, confirmed its post-tax net loss of NT$787 million for the first half of 2026. Based on Taisun’s current capitalization of approximately NT$5 billion, this translates to a per-share loss exceeding NT$1.5.

Taisun stated that the post-tax net loss of NT$787 million in the first half of 2026, compared to a post-tax net profit of NT$322 million in the same period of 2025, was primarily due to several factors. First, regarding the recent edible oil safety incident, the company made provisions for estimated losses related to product returns, inventory destruction, and anticipated compensation based on currently available information, resulting in a pre-tax impact of approximately NT$400 million.

Additionally, Taisun holds a 33.33% equity stake in Chung Lien Oils Co., Ltd. During the first half of 2026, the company recognized an investment loss of approximately NT$200 million under the equity method.

Furthermore, Taisun recognized an impairment loss of NT$520 million on its prepaid investment in Jiakong Fintech during the first half of 2026. Taisun originally paid NT$3.6 billion to Jiakong Fintech Co., Ltd. as an investment. Due to disputes over the investment transaction, Taisun filed a lawsuit on August 30, 2023, seeking the return of NT$3.5958 billion. On May 13, 2025, the company won a first-instance judgment at the Taiwan Taipei District Court, which granted provisional enforcement.

Taisun has since applied for provisional enforcement and seized relevant assets of Jiakong Fintech, including 50 million shares of JKO Payment Co., Ltd. held by Jiakong Fintech—representing 100% of JKO Payment’s equity.

Regarding the recoverable amount of this prepaid investment, Taisun conducted an assessment by comprehensively considering the value of seized assets, progress in judicial enforcement procedures, and expected recovery outcomes. Based on relevant accounting standards, the company recognized an impairment loss of NT$520 million on the prepaid investment.